Prestige beauty outpaces high-end bags as China's luxury spending evolves
EL•Luxury groups see flatter demand
While beauty specialists like Estee Lauder and L'Oreal are reporting stronger sales of top-end lines in China this year, luxury groups like Hermes, famous for its Birkin bag, and Louis Vuitton owner LVMH say demand is largely flat to slightly firmer.
"The aspirational (Chinese) consumer has not traded down. She has moved to the top of a category she can comfortably afford, instead of the bottom of one she cannot," said Jacques Roizen, co-founder of Shanghai-based Foresight Performance Partners.
Skincare outperforms leather goods
Research from consultancy Oliver Wyman and the Tax Free World Association found "intention to spend" among affluent Chinese consumers was significantly higher for prestige beauty than for leather goods, with 37% compared to 4% saying they intended to spend more in the next year.
